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Deductions in respect of certain incomes of Offshore Banking Units and International Financial Services Centre. 80LA.1[(1) Where the gross total income of an assessee, being a scheduled bank, or, any bank incorporated by or under the laws of a country outside India; and having an Offshore Banking Unit in a Special Economic Zone, includes any income referred to in sub-section (2), there shall be allowed, in accordance with and subject to the provisions of this section, a deduction from such income, of an amount equal to–– (a) one hundred per cent. of such income for five consecutive assessment years beginning with the assessment year relevant to the previous year in which the permission, under clause (a) of sub-section (1) of section 23 of the Banking Regulation Act, 1949 or permission or registration under the Securities and Exchange Board of India Act,1992 or any other relevant law was obtained, and thereafter; (b) fifty per cent. of such income for five consecutive assessment years. (1A) Where the gross total income of an assessee, being a Unit of an International Financial Services Centre, includes any income referred to in sub-section (2), there shall be allowed, in accordance with and subject to the provisions of this section, a deduction from such income, of an amount equal to one hundred per cent. of such income for any ten consecutive assessment years, at the option of the assessee, out of fifteen years, beginning with the assessment year relevant to the previous year in which the permission, under clause (a) of sub-section (1) of section 23 of the Banking Regulation Act, 1949 or permission or registration under the Securities and Exchange Board of India Act,1992 or 3{permission or registration under the International Financial Services Centre Authority Act, 2019 was obtained}.] (2) The income referred to in 2[sub-section (1) and sub-section (1A)] shall be the income- (a) from an Offshore Banking Unit in a Special Economic Zone; or (b) from the business referred to in sub-section (1) of section 6 of the Banking Regulation Act, 1949 (10 of 1949) with an undertaking located in a Special Economic Zone or any other undertaking which develops, develops and operates or develops, operates and maintains a Special Economic Zone; or (c) from any Unit of the International Financial Services Centre from its business for which it has been approved for setting up in such a Centre in a Special Economic Zone. 4{(d) arising from the transfer of an asset, being an aircraft 6[ or ship] which was leased by a unit referred to in clause (c) to a person subject to condition that the unit has commenced operation on or before the 31st day of March, 2024.} 4Explanation.—For the purposes of this clause, 7[“aircraft and ship”] shall have the meaning assigned to it in the Explanation to clause (4F) of section 10. (3) No deduction under this section shall be allowed unless the assessee furnishes along with the return of income,- (i) the report, in the form specified by the Central Board of Direct Taxes under clause (i) of sub-section (2) of section 80LA, as it stood immediately before its substitution by this section, of an accountant as defined in the Explanation below sub-section (2) of section 288, certifying that the deduction has been correctly claimed in accordance with the provisions of this section; and 5{(ii) a copy of the permission obtained under clause (a) of sub-section (1) of section 23 of the Banking Regulation Act, 1949 or copy of permission or registration obtained under the International Financial Services Centres Authority Act, 2019 Explanation.-For the purposes of this section,- (a) "International Financial Services Centre" shall have the same meaning as assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005; (b) "scheduled bank" shall have the same meaning as assigned to it in clause (e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934); (c) "Special Economic Zone" shall have the same meaning as assigned to it in clause (za) of section 2 of the Special Economic Zones Act, 2005; (d) "Unit" shall have the same meaning as assigned to it in clause (zc) of section 2 of the Special Economic Zones Act, 2005.] Notes: 1. Substituted by The Finance Act, 2019 w.e.f. 01.04.2020 sub-section (1) shall bw substituted, before it was read as- (1) Where the gross total income of an assessee,- (i) being a scheduled bank, or, any bank incorporated by or under the laws of a country outside India; and having an Offshore Banking Unit in a Special Economic Zone; or (ii) being a Unit of an International Financial Services Centre, includes any income referred to in sub-section (2), there shall be allowed, in accordance with and subject to the provisions of this section, a deduction from such income, of an amount equal to- (a) one hundred per cent of such income for five consecutive assessment years beginning with the assessment year relevant to the previous year in which the permission, under clause (a) of sub-section (1) of section 23 of the Banking Regulation Act, 1949 (10 of 1949) or permission or registration under the Securities and Exchange Board of India Act, 1992 (15 of 1992) or any other relevant law was obtained, and thereafter; (b) fifty per cent of such income for five consecutive assessment years. 2. Substituted by The Finance Act, 2019 w.e.f. 01.04.2020 in sub-section (2),for the word, brackets and figure sub-section (1) the following shall be substituted namely, sub-section (1) and sub-section (1A). 3. Substituted by Finance Act, 2021 dated 28.03.2021 w.e.f 01.04.2022 in sub-section (1A), for the words- any other relevant laws was obtained the words shall be substituted- permission or registration under the International Financial Services Centre Authority Act, 2019 was obtained 4.Inserted by Finance Act, 2021 dated 28.03.2021 w.e.f 01.04.2022 5. Substituted by Finance Act, 2021 dated 28.03.2021 w.e.f 01.04.2022 in sub-section (3), for clause (ii), the following clause- (ii) a copy of the permission obtained under clause (a) of sub-section (1) of section 23 of the Banking Regulation Act, 1949 (10 of 1949). shall be substituted, namely- (ii) a copy of the permission obtained under clause (a) of sub-section (1) of section 23 of the Banking Regulation Act,1949 or copy of permission or registration obtained under the International Financial Services Centre Authority Act, 2019. 6.Inserted by Finance Act, 2022 dated 30.03.2022 w.e.f 01.04.202 7.Subsituted by Finance Act, 2022 dated 30.03.2022 w.e.f 01.04.202 in the Explanation,for the words ‘this clause, “aircraft The following shall be subsituted- “aircraft” and “ship”
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